EUR/USD on the verge of breaking below 1.0700 handle

A fresh bout of greenback buying interest has emerged in the past few hours, with the EUR/USD pair erasing tepid recovery gains to move on the verge of decisively breaking through 1.0700 key support. 

For the second consecutive day, spot lost early gains and is now trading with negative bias for the eight straight session amid broad based US Dollar strength. In absence of any market moving releases from the Euro-zone, the current slide could be attributed to the prevalent bullish sentiment surrounding the greenback led by market expectations of an eventual Fed rate-hike action in December. 

From technical perspective, the pair has failed to register any meaningful recovery despite of near-term oversold conditions and thus, suggests the pair's vulnerability to slide further in the near-term.

Today's US economic releases that include - PPI, industrial production and capacity utilization data would be looked upon for some immediate respite for the pair. 

Technical levels to watch

A follow through selling pressure below 1.0700 level now seems to pave way for further near-term downslide towards 1.0630 intermediate support before the pair eventually drops to test Dec. 2015 lows support near 1.0550 level. On the flip side, 1.0750 (session peak) now becomes immediate hurdle, which if cleared might assist the pair further towards 1.0800 resistance. Any further up-move beyond 1.0800 area might now be capped at an important horizontal support break-point, turned strong resistance, near 1.0850 region and only a decisive move above 1.0850 resistance would negate any near-term bearish bias.

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